Summary
The Gujarat statutory works-contract tribunal can grant interim measures under Section 17 of the Arbitration and Conciliation Act, 1996 because those powers are consistent with the State enactment. Contractors challenging contractual recovery notices should approach that tribunal. The Court set aside the High Court judgments without deciding the merits of the disputed recoveries and declared Gangotri Enterprises per incuriam.
Issues
- Whether the Gujarat statutory works-contract tribunal has Section 17 interim powers.
- Whether the recovery dispute and interim protection should be considered by that tribunal.
- Whether Gangotri Enterprises correctly applied Raman Iron Foundry.
Provisions considered
- Section 2(4), Arbitration and Conciliation Act, 1996Part I applies to statutory arbitration except for the listed exclusions and inconsistencies with the special enactment. (¶¶ 11, 15)
- Section 17, Arbitration and Conciliation Act, 1996Interim-measure powers supplement the Gujarat tribunal’s powers without inconsistency. (¶¶ 13, 21)
- Sections 13 and 21, Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992Civil court jurisdiction is barred subject to the statutory High Court remedy, and inconsistent general arbitration provisions yield to the special Act. (¶ 17)
Held
- Part I applies to statutory arbitrations subject to its express exclusions and inconsistent special provisions. Section 17 interim powers are consistent with and supplement the Gujarat tribunal’s powers. (¶¶ 15, 21)
- The tribunal is the appropriate forum to determine the legality of the Government’s notice, entitlement to recovery and the contractor’s prima facie claim for interim relief. The Court deliberately expressed no view on the recovery merits. (¶ 18)
- Gangotri Enterprises was per incuriam because it relied on Raman Iron Foundry on an issue on which that decision had been specifically overruled by the larger Bench in H.M. Kamaluddin Ansari. (¶¶ 19, 20)
- The contractors may approach the statutory tribunal, which must decide the claims on merits without rejecting them for limitation if approached within two months. (¶ 22)
Result
Both State appeals allowed and the High Court judgments set aside. Contractors were granted liberty to approach the Gujarat statutory tribunal within two months with protection against dismissal on limitation. Pending applications disposed of.